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Nvidia Faces Class Action Over Crypto Mining Revenue Disclosure Gaps

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Nvidia Faces Class Action Over Crypto Mining Revenue Disclosure Gaps

Nvidia is being sued for hiding how much of its gaming GPU revenue came from crypto miners.

The class action covers fiscal 2018, a period when quarterly revenue surged 52% and 25% year-over-year. Shareholders allege the company deliberately obscured the fact that Ethereum mining demand was driving those numbers, not gaming.

The stakes extend beyond Nvidia. As the primary infrastructure-layer supplier to the GPU mining ecosystem, any regulatory cloud over its disclosure practices ripples into how investors price exposure across the entire supply chain.

Now the Supreme Court has entered the picture. It is reviewing the 9th Circuit’s decision allowing the suit to proceed, turning a corporate disclosure dispute into a potential landmark ruling on securities pleading standards.

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This just got a lot bigger than one company’s accounting.

Key Takeaways:

  • Case detail: Nvidia settled a parallel SEC enforcement action in May 2022 for $5.5 million after regulators found it failed to disclose crypto mining’s material impact on gaming GPU revenue in fiscal Q2 and Q3 2018.
  • Legal mechanism: The class action turns on PSLRA pleading standards — plaintiffs lack internal documents proving CEO Jensen Huang knew exact mining revenue shares, but argue employee-level crypto trend tracking constitutes constructive knowledge sufficient to survive dismissal.
  • Market implication: A Supreme Court ruling that loosens PSLRA pleading thresholds would expand litigation exposure for any public company with material crypto-derived revenue — a direct risk vector for mining hardware suppliers and adjacent equities.

The Allegation: Crypto Revenue Classified as Gaming Demand

Nvidia told investors its gaming GPU revenue growth reflected gamer demand. It did not. Cryptocurrency miners were bulk-buying GeForce cards to mine Ethereum during the 2017 boom cycle.

When Bitcoin crashed in 2018 and mining economics collapsed, GPU demand evaporated and gaming revenue fell sharply. The revenue base was never what Nvidia said it was.

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The internal awareness is what makes this difficult to defend. During the 2 quarters with 52% and 25% year-over-year spikes, Nvidia’s own employees were actively tracking crypto market trends and their correlation with GPU sales.

Plaintiffs argue that makes executive statements attributing growth to gaming not just incomplete but knowingly misleading.

Nvidia’s own Q4 FY2019 results did the damage retroactively. The company explicitly linked the gaming and OEM revenue decline to cryptocurrency mining downturns. That admission directly contradicts the earlier framing.

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The SEC already agreed something went wrong. Enforcement Division Crypto Assets and Cyber Unit Chief Kristina Littman stated that Nvidia’s disclosure failures deprived investors of critical information to evaluate the company’s business in a key market. Nvidia paid $5.5 million and signed a cease-and-desist without admitting wrongdoing.

That settlement structure is the core of the civil case now. Nvidia preserved its technical defense by not admitting fault. But the SEC finding functionally validates the factual allegation. The class action is not relitigating whether the disclosure failure happened. It is litigating who bears the financial consequences.

The Strategic Signal: Infrastructure-Layer Risk for Mining Markets

Nvidia supplies the dominant share of discrete GPUs used in proof-of-work mining operations. Mining companies — whether publicly listed operators or sovereign-scale entities like Bhutan’s state mining program liquidating Bitcoin holdings into Binance — depend on Nvidia hardware pricing and availability as a primary cost input.

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Any sustained legal or regulatory uncertainty over Nvidia’s disclosure practices introduces a new variable into GPU procurement planning and equity valuation models for mining-adjacent companies.

The channel through which the lawsuit affects sentiment is investor trust, not GPU pricing directly. If the Supreme Court tightens PSLRA standards and dismisses the case, it effectively insulates tech companies from class actions built on circumstantial inference, reducing securities litigation risk across the sector.

If the Court upholds the 9th Circuit and the class action proceeds to discovery, plaintiffs gain access to internal communications, which historically is where these cases settle expensively.

Mining equities like Bitmine, currently accumulating ETH as a strategic reserve asset, carry indirect exposure through Nvidia’s role as GPU supplier — a guilty verdict or major settlement reframes how the market prices crypto-hardware dependency risk across the board.

Ethereum’s Merge in September 2022 already eliminated GPU-based ETH mining as a demand driver, and Nvidia’s 2021 launch of dedicated Cryptocurrency Mining Processor (CMP) products with hash rate limiters on GeForce cards was a deliberate structural separation of markets. The litigation relitigates a period that no longer operationally exists — but the precedent it sets for revenue source disclosure requirements is entirely forward-looking.

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OKX says it won’t go public until it can deliver returns to investors

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OKX says it won’t go public until it can deliver returns to investors

OKX does not plan to rush into public markets in the U.S., even as the crypto exchange pushes deeper into global expansion and tokenized finance.

“We will go public when we have confidence that we can give back shareholder value,” said Haider Rafique, the firm’s general manager and chief marketing officer, during a conversation at the Digital Asset Summit in New York on Thursday. “If we are not confident that we can do that, I don’t think there’s going to be any desire for us to go into the public markets.”

The stance comes as OKX recently secured a strategic investment tied to Intercontinental Exchange, the parent company of the New York Stock Exchange, in a deal that valued the company at $25 billion. Rafique said the firm intentionally priced the round conservatively. “I think we did underprice ourselves when you look at our revenue growth, when you look at our licenses and our assets,” he said, adding the move was “very intentional” and tied to long-term shareholder returns.

The comments reflect a broader concern about how crypto companies have performed in public markets. Rafique pointed to at least one major listing that has struggled since going public. “I bought one share… and that one share is at a negative 50% return,” he said. “That’s not a good thing. That’s actually bad for the category.”

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While he did not name the company, Coinbase (COIN) — the largest U.S.-listed crypto exchange — has faced volatility since its 2021 debut and currently trades nearly 50% lower than its IPO price. Other crypto-linked listings have also struggled to maintain consistent investor returns, raising questions about how public markets value the sector.

Rafique warned that repeating past patterns could damage the industry further. “If we treat going public the same way we treated ICOs and the 5 million tokens that were put in market last year… then I think we’re doomed as an industry,” he said.

Instead, OKX is positioning itself as a longer-term builder. The exchange, founded in Asia, has grown into one of the largest global crypto trading platforms, particularly in derivatives, where Rafique said it ranks among the top venues. Unlike U.S.-focused rivals such as Coinbase and Kraken, OKX operates across multiple regions, including Europe, Latin America and Asia, giving it a broader liquidity base.

That global footprint is central to its strategy as it eyes further expansion into the U.S. Rafique said international exchanges bring structural advantages, including deeper liquidity across time zones. “Our unified order book becomes a really strong competitive advantage,” he said, particularly during off-hours in U.S. markets.

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The company is also betting on tokenized financial assets and blockchain-based infrastructure as the next phase of growth. Its partnership with ICE is expected to support efforts to bring equities and other traditional assets onchain, with OKX acting as a distribution layer for those products.

For now, though, Rafique said the focus remains on building before listing. “We’re going to build this company over 20, 30 years,” he said, framing the IPO decision as one tied to durability rather than timing.

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LayerZero Goes Live on Institution-Focused Canton as Its First Interop Protocol

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LayerZero Goes Live on Institution-Focused Canton as Its First Interop Protocol

The LayerZero integration gives assets tokenized on Canton access to over 165 public blockchains.

LayerZero has integrated with the institution-focused blockchain Canton (CC), becoming the first interoperability protocol to go live on the network, per a press release shared with The Defiant.

The integration, announced today, March 26, lets traditional financial institutions on Canton route tokenized assets, including securities, digital bonds, and equities, across the more than 165 public blockchains supported by LayerZero, while maintaining their compliance and confidentiality requirements, according to the release.

Also part of the integration, investors can now use stablecoins on external public chains to fund primary purchases of Canton-based tokenized real-world assets (RWAs), while Canton-native tokenized instruments can move into other ecosystems for secondary market trading.

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“Canton has already built the rails for traditional finance, processing more than $350B in daily U.S. Treasury repo volume,” LayerZero CEO Bryan Pellegrino said in the release. “LayerZero’s job is to make sure those assets are available in every global market, across blockchains.”

The deal extends LayerZero’s already notable institutional push. In February, LayerZero unveiled its own Layer 1 blockchain, Zero, backed by strategic investments from Citadel Securities and Tether.

The Depository Trust & Clearing Corporation (DTCC) and the New York Stock Exchange’s parent Intercontinental Exchange both said they are evaluating the network for tokenized securities and settlement workflows.

More recently, LayerZero partnered with Centrifuge to expand multichain access for tokenized funds including nearly $861 million in tokenized U.S. Treasuries, as The Defiant reported last week.

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For its part, Canton positions itself as the L1 blockchain network for TradFi institutions, with configurable privacy features. Per data from RWAxyz, Canton currently has $342.7 billion in represented asset value from tokenized RWAs, all of which is attributed to Broadridge’s Distributed Ledger Repo (DLR) platform.

Canton’s native CC token now carries a market cap of roughly $5.2 billion, ranking it #21 on CoinGecko. Last June, Digital Asset, the firm behind Canton, raised $135 million in a round that included Goldman Sachs, Citadel Securities, BNP Paribas, the DTCC, and Paxos, with CEO Yuval Rooz saying the capital would accelerate adoption for tokenized bonds, money-market funds, and commodities, as The Defiant reported at the time.

Just yesterday, Visa announced that it has become a Super Validator on the Canton network, becoming the first global payments company to do so, and is set to introduce privacy-preserving payments to the network.

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.

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Best Crypto to Invest in for 2026 as SEC Classifies 16 Commodities While Pepeto Offers a Rare 220x Before Listing

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Best Crypto to Invest in for 2026 as SEC Classifies 16 Commodities While Pepeto Offers a Rare 220x Before Listing

There are so many entries in the crypto market now, making it hard to find the best crypto to invest in. The key is to look past the attention and focus on projects that actually solve real problems for everyday traders with tools that work today.

Pepeto has raised more than $8 million and is filling its latest stage, priced at $0.000000186. That kind of traction shows committed interest from wallets that did the math. With a potential return of 220x projected by analysts, Pepeto is outpacing large caps in terms of near term opportunity. For anyone looking for the best crypto to invest in for 2026, this one is worth moving on before the Binance listing closes the entry.

The SEC and CFTC issued a joint ruling on March 17 classifying 16 major cryptocurrencies as digital commodities including BTC, ETH, SOL, XRP, ADA, DOGE, SHIB, LINK, and AVAX, according to CoinDesk.

The decision ended over a decade of regulatory uncertainty and immediately triggered $4.5 billion in Bitcoin ETF inflows during March, according to The Block.

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Finding the top entry for 2026 just got clearer because assets with commodity status now have institutional backing, and the presale with a Binance listing approaching sits ahead of all of them in return potential.

Where the Commodity Classification Meets Presale Returns Before Trading Opens

Pepeto

Think of Pepeto as having a personal verification layer for every contract your capital touches. The exchange reviews every smart contract before you interact with it, flagging anything dangerous in plain language. You can ask it any question about a token and the platform explains it in terms that do not require a technical background.

With a clean and fast platform, you do not need to be technical to use the exchange. That built in protection is a big reason why so many wallets are entering the presale as the best crypto to invest in right now. The risk scorer catches the traps before your money moves, PepetoSwap handles every trade at zero fees, and the cross chain bridge sends tokens between networks at zero cost.

Now look at what the numbers mean for your position. The market cap is small enough that 220x from the Binance listing is a rational target, with 193% APY staking building early positions while stages fill faster. The SolidProof audit verified every contract, and the developer who created the original Pepe coin reaching $11 billion with the same 420 trillion supply built the exchange alongside a former Binance expert.

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The end of the presale is closer than most realize, with the Binance listing approaching. Pepeto is the best crypto to invest in because the exchange already works and the distance between presale pricing and listing is where 220x lives.

SUI

SUI trades near $0.91 as of March 27 still stuck below $1.00 despite adding hundreds of thousands of new users and receiving commodity classification from the SEC, according to CoinMarketCap.

Support at $0.80, resistance at $1.50. Growing chain, but the return from $0.91 is capped by weak retention and takes months to deliver what one listing delivers from presale pricing.

LINK

Chainlink trades near $8.87 as of March 27 with the CCIP cross chain protocol expanding and the SEC commodity classification confirmed, according to CoinMarketCap.

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Support at $7.50, resistance at $10.00. Strong oracle infrastructure, but the path from $8.87 is a recovery measured in quarters, not the compressed timeline where the best crypto to invest in sits at presale pricing before one listing.

Best Crypto to Invest in Confirms the Presale Price Becomes the Return Everyone Talks About After Listing

Pepeto is offering you a chance to enter something that changes your entire cycle. The SEC just classified 16 assets as commodities, and the regulatory era that follows is exactly where an exchange with verified tools and a Binance listing delivers the kind of returns that make the early entry the story everyone references.

The last stage sold out ahead of schedule and this one fills while you read. The Pepeto official website is where getting in now means being on the side that collects when the listing opens trading and every wallet that entered at presale pricing becomes the return that late arrivals wish they had secured.

Click To Visit Pepeto Website To Enter The Presale

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FAQs:

Finding the best crypto to invest in?

Many consider Pepeto the strongest option because the exchange runs verified tools today and the Binance listing is confirmed with analysts projecting 220x from presale pricing.

What is the best crypto to invest in for 2026?

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Pepeto checks every requirement for traders who want compressed returns. The Pepeto official website is where the exchange is still at presale pricing before the listing opens to the broader market.

What are the top coins to invest in alongside the new commodity classification?

Getting in early at presale pricing means your position has the full distance to the listing ahead of it, and established coins that already cost more face a slower and harder path to deliver returns that change your cycle.


Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.

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Goldman Sachs-Backed Canton Links With LayerZero

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

TLDR

  • LayerZero has integrated its interoperability protocol with the Canton Network to support cross-chain asset transfers.
  • The Canton Network operates as a blockchain designed for regulated financial institutions and structured markets.
  • Goldman Sachs supports Digital Asset, the primary developer behind the Canton Network.
  • The integration enables institutions to route tokenized assets across more than 165 public blockchains.
  • LayerZero reported that its ecosystem represents over $100 billion in value.

LayerZero has launched its interoperability protocol on the Canton Network to enable cross-chain transfers for institutional users. The integration allows regulated financial firms to move tokenized assets across more than 165 public blockchains. Both organizations confirmed the development in a joint statement released Thursday.

Goldman Sachs and Institutional Backers Support Canton Expansion

Canton Network operates as a blockchain built for regulated financial institutions and structured markets. Digital Asset develops the network, and Goldman Sachs supports the company alongside other firms. Microsoft and DTCC also back Digital Asset as strategic supporters.

Digital Asset raised $135 million in June during a funding round led by DRW Venture Capital and Tradeweb Markets. BNP Paribas, Circle Ventures, Citadel Securities, DTCC, and Goldman Sachs joined the round. The company confirmed that nearly 400 ecosystem participants now engage with Canton.

Goldman Sachs Global Head of Digital Assets Mathew McDermott addressed the partnership last year. He said, “Our longstanding relationship with Digital Asset stems from a deep conviction in the strength of their technology.” His statement highlighted continued institutional backing for the platform.

LayerZero Enables Cross-Chain Routing for Tokenized Assets

LayerZero became the first interoperability protocol to go live on the Canton Network. The integration allows institutions in Canton to route tokenized assets securely across public blockchains. The organizations stated that the system maintains compliance and regulatory standards during transfers.

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LayerZero designed its protocol to connect any token or application with any blockchain network. The company reported that its ecosystem represents over $100 billion in value. Through this link, that ecosystem can now access Canton’s institutional infrastructure.

Bryan Pellegrino, CEO of LayerZero Labs, outlined the operational scope of the integration. He said, “Canton has already built the rails for traditional finance, processing more than $350 billion in daily U.S. Treasury repo volume.” He added, “LayerZero’s job is to make sure those assets are available in every global market, across blockchains.”

BNP Paribas, DRW, Goldman Sachs, Liberty City Ventures, QCP, and Tradeweb have participated in testing Canton. The network confirmed ongoing collaboration with firms from both traditional and decentralized finance sectors. Canton stated that these participants contribute to network validation and infrastructure testing.

The integration now links institutional blockchain infrastructure with public networks through LayerZero’s protocol. Both organizations confirmed that institutions can transfer tokenized assets while retaining compliance controls. The companies released the announcement on Thursday as part of their joint update.

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OKX Delays U.S. IPO, Cites Weak Crypto Listings

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

TLDR

  • OKX said it will not rush into a U.S. IPO and will wait until it can deliver shareholder value.
  • Haider Rafique said the company will only go public when it has confidence in long-term returns.
  • OKX secured a strategic investment linked to Intercontinental Exchange that valued the company at $25 billion.
  • Rafique said the firm intentionally priced the funding round conservatively despite strong revenue growth.
  • He warned that poor stock performance by listed crypto firms has hurt the industry’s image.

OKX said it will not hurry into a U.S. IPO as it expands global operations. A senior executive linked the timing to shareholder returns and market performance. The company instead plans long-term growth across regions and tokenized finance.

OKX Ties IPO Plans to Shareholder Value and Market Timing

Haider Rafique said OKX will enter public markets only when it can deliver shareholder value. He spoke during the Digital Asset Summit in New York on Thursday. He said, “We will go public when we have confidence that we can give back shareholder value.”

He added that the firm will avoid listing without that confidence and clear performance targets. He said, “If we are not confident, there is no desire to go public.” He linked the approach to long-term planning and measured expansion.

OKX recently secured a strategic investment linked to Intercontinental Exchange, which owns the New York Stock Exchange. The deal valued OKX at $25 billion, according to Rafique. He said the company priced the round conservatively despite revenue growth.

He said, “We did underprice ourselves when you look at our revenue growth and licenses.” He added that the pricing decision was intentional and tied to long-term returns. He said the company focused on durability over short-term valuation gains.

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Rafique also referenced poor public market performance by crypto firms. He said he bought one share in a major listing that later fell 50%. He said, “That’s not a good thing, and that’s bad for the category.”

He did not name the company during the discussion. However, Coinbase trades nearly 50% below its 2021 IPO price. Other crypto-linked stocks have also faced price swings since listing.

Global Expansion and Tokenized Assets Drive OKX Strategy

Rafique warned that careless listings could hurt the broader crypto sector. He said, “If we treat going public like we treated ICOs, we are doomed.” He compared rushed IPOs to the release of millions of tokens last year.

He said OKX plans to build the company over 20 or 30 years. He described the IPO decision as tied to durability rather than timing. He said the firm wants stable growth before entering public markets.

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OKX operates across Europe, Latin America, Asia, and other regions. Rafique said the exchange ranks among top venues in crypto derivatives. He contrasted that reach with U.S.-focused rivals like Coinbase and Kraken.

He said international exchanges benefit from liquidity across time zones. He said, “Our unified order book becomes a strong competitive advantage.” He added that this structure supports trading during U.S. off-hours.

The company also targets tokenized financial assets and blockchain infrastructure. Its partnership with Intercontinental Exchange supports plans to bring equities and other assets onchain. Rafique said OKX will act as a distribution layer for those products.

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Solana Long-Short Ratio Signals Unusual Derivatives Positioning

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Solana Long-Short Ratio Signals Unusual Derivatives Positioning

Solana (SOL) is trading at $87, still down 69% from its January 2025 peak near $295.91. The long-short ratio has skewed above 3:1 on some platforms with retail sitting 65.5% long. That is not a normal reading for an asset trading below every major moving average.

(Source – Coinalyze)

The open interest tells the real story. OI sits at roughly $2.2billion and is contracting, down, even as the long bias intensifies. Price moving up while open interest shrinks is a textbook squeeze signature. Not accumulation. Not conviction.

The math does not support a real rally here.

Discover: The best pre-launch token sales

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SOL Derivatives Setup: Squeeze Risk or Breakout Fuel?

The long-short ratio is being misread by most traders watching it. It measures position count distribution, not capital weight. Longs and shorts are always structurally matched 1:1 in notional size on derivatives markets. A 3:1 long-short ratio means three times as many traders are positioned long, not that three times as much capital is long. That distinction is critical to understanding the actual risk here.

What makes the current setup unstable is the divergence between that bullish tilt and the absence of fresh capital. Sustained long bias with expanding open interest signals conviction. Sustained long bias with shrinking open interest signals a squeeze in progress, shorts being forced out, not bulls stepping in. The neutral funding rate of 0.0038% per 4-hour period confirms it: this is short covering, not new long entries.

On February 28, the largest single liquidation event pushed SOL to a 52-week low of $77.91, per exchange data. Short liquidations on March 5 totaled $2.58M, 75.6% of total liquidations, against just $0.83M in long liquidations. That 3:1 liquidation skew mirrors the ratio skew almost exactly. The squeeze mechanics are already running.

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(Source – SOLUSD, TradingView)

Key technical levels define the binary. The 200-day moving average sits near $150 , structurally far above the current price and representing the ceiling of any meaningful recovery. Near-term, the Changelly model places April channel resistance at $102.51, with $100.37 as the lower bound of that zone. Below current price, the $77.91 February low is the last structural floor before open air.

The bull scenario: price clears $90–$92 with expanding open interest, funding rates tick positive, and the long bias becomes self-fulfilling as momentum traders pile in. SOL’s high-beta profile means a confirmed breakout accelerates fast, similar derivatives setups in other L1s have produced 20–30% moves within days once squeeze momentum flips to genuine accumulation.

The bear scenario: price stalls at resistance, overleveraged longs begin unwinding, and the same reflexivity that would accelerate upside now cascades downside. The Fear & Greed Index at 9, Extreme Fear, alongside a 65.5% long reading, puts the current positioning in the warning zone for pullbacks, as analysts describe it. A breach of $80 triggers the next liquidation cluster.

The long-short ratio is a pressure gauge. Right now it is elevated. That pressure resolves through continuation or liquidation, and without open interest expansion, the liquidation path carries a higher probability. Regulatory developments in crypto derivatives oversight also remain a macro overhang for leveraged positioning across the sector.

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Bitcoin Hyper Targets Early Mover Upside as Solana Tests Key Levels

While Solana navigates an unstable derivatives setup with no structural confirmation of reversal, smart money is rotating into Bitcoin Hyper, a Bitcoin-native L2 infrastructure project designed to bring EVM-compatible execution speed to BTC liquidity without wrapped token exposure.

The project differentiates itself through sub-second finality on a Bitcoin-settled chain, targeting the DeFi and perpetuals market currently dominated by Solana and Ethereum L2s. Its presale has raised $5.9M to date, with the current token price at $0.0115 and staking APY locked at 108% for early participants.

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The presale window closes before the public DEX listing, which historically represents the highest-risk, highest-return entry point for infrastructure plays. Year-end SOL forecasts ranging from $250–$300 reflect broader L1 recovery expectations — but early-stage infrastructure projects with fixed presale pricing offer asymmetric upside independent of SOL’s near-term squeeze resolution.

Join the Bitcoin Hyper Presale Now

This article is for informational purposes only and does not constitute investment advice. Cryptocurrency investments carry significant risk, including total loss of capital. Always conduct your own research before making any financial decisions.

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Coinbase and Better Launch Crypto-Backed Mortgages With Fannie Mae Backing

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Coinbase and Better Launch Crypto-Backed Mortgages With Fannie Mae Backing

Borrowers can pledge Bitcoin or USDC as down payment collateral without triggering a taxable event.

Coinbase and Better Home & Finance announced a partnership on Thursday to offer token-backed mortgages. The product aims to expand access to homeownership while carrying the same Fannie Mae backing as other conforming mortgages.

Qualifying Americans can now pledge Bitcoin or USDC as collateral to fund their cash down payment, securing a standard conforming mortgage without liquidating their digital assets or potentially triggering a taxable event.

How It Works

Instead of needing to come up with cash for the down payment, borrowers pledge their crypto holdings as collateral for a separate loan that covers the down payment. The result is two loans at closing: a standard Fannie Mae mortgage on the home, and a second loan secured by the pledged crypto. Both loans share the same interest rate and amortization term, so the borrower manages a single combined monthly payment — a structure the companies describe as a market first.

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The mortgages are designed in accordance with Fannie Mae guidelines and structured as standard conforming loans, which the companies say will enable significantly lower interest rates than those traditionally associated with token-backed loans.

No Margin Calls

If Bitcoin’s value drops, the mortgage terms remain unchanged, and no additional collateral is required. Market movements alone never trigger liquidation. Collateral is only at risk of liquidation in the event of a 60-day payment delinquency, similar to conforming mortgages.

For borrowers who pledge USDC, the collateral earns rewards that can help offset mortgage payments, enabling borrowers to reduce their net effective interest rate.

Coinbase One members who close a crypto-backed or regular mortgage through Better are eligible for a rebate worth 1% of the mortgage value, capped at $10,000, to cover closing costs and fees.

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Why It Matters

For decades, the path to homeownership has required Americans to sell assets, liquidate investments, or withdraw retirement savings to cover a cash down payment — often triggering capital gains taxes or early withdrawal penalties. Market reports suggest 52 million American adults, or roughly 20% of the adult population, have owned digital assets.

Until now, borrowers have not been able to get credit for those assets in the traditional mortgage underwriting process without first liquidating them. Crypto-backed mortgages change this by allowing onchain wealth to translate into real-world access, expanding the pathways to homeownership while preserving long-term investment positions.

Better CEO Vishal Garg said the partnership “introduces a new pathway to realizing the American Dream for the 52 million Americans who own digital assets.”

The companies plan to expand eligible collateral types over time to include tokenized equities, fixed income, and other tokenized real estate assets, pending market and regulatory conditions.

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This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.

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Real-World Perps Thrive, While Altcoins Languish

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Gold, Derivatives, Precious Metals, Financial Derivatives, Energy, Futures, Altcoin Watch, Commodities Investment, Oil and Gas, Standard Chartered

Onchain perpetual futures linked to real-world commodities like precious metals and oil have surged in trading volume, signaling an investor rotation from altcoins to commodity-linked digital assets, according to a report published Thursday by digital asset bank Sygnum.

Trading volume for oil and precious metals perpetual futures markets on the Hyperliquid decentralized exchange (DEX) accounts for over 67% of HIP-3 contracts in Q1 2026, also known as “Builder-Deployed Perpetuals,” on the Hyperliquid platform, according to the report.

Previously, indexes accounted for about 90% of HIP-3 trading activity, but this has fallen to about 17%, according to Sygnum.

Gold, Derivatives, Precious Metals, Financial Derivatives, Energy, Futures, Altcoin Watch, Commodities Investment, Oil and Gas, Standard Chartered
HIP-3 trading volumes by asset class. Source: Sygnum

Weekend HIP-3 trading activity has surged by about 9x since January 2026, the report said, adding, “This is likely due to an uptick in crypto-native traders rotating into traditional assets as the broader altcoin market continues to underperform.” 

Lucas Schweiger, Sygnum digital asset ecosystem research lead, told Cointelegraph that this shift toward onchain digital assets is corroborated by a 250% year-over-year surge in the market cap of tokenized real-world assets (RWAs).

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There are about $23 billion in tokenized real-world assets that are traded on permissionless blockchain networks at the time of this writing, he said.

Gold, Derivatives, Precious Metals, Financial Derivatives, Energy, Futures, Altcoin Watch, Commodities Investment, Oil and Gas, Polymarket, Standard Chartered
HIP-3 weekend trading volume. Source: Sygnum

He also said that traders are treating altcoins as “leveraged BTC proxies.” Schweiger told Cointelegraph:

“That creates an environment where crypto-native capital naturally gravitates toward traditional asset perps that can be traded through the same wallet, using the same margin, just a different trade.”

The ongoing war in the Middle East and the disruption to energy infrastructure have caused oil prices to spike, while many altcoins are already down 80-90% below their all-time highs, according to Sygnum.

Related: Bitcoin leads, altcoin indicators drop to intriguing lows: Time for an altseason?

Recessionary concerns mount as Middle East war drags on

The war between the United States, Israel and Iran has disrupted critical energy infrastructure across the Middle East, causing global oil prices to spike to a high of about $120 per barrel.

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Oil prices have whipsawed since the start of the conflict, rising or falling in response to comments made by US President Donald Trump and the Iranian government or ongoing developments in the geopolitical crisis.

If the price of oil remains above $100 per barrel in 2026, it will cause inflation to spike, according to Nic Puckrin, market analyst and founder of the Coinbureau media channel.

Traders are still pricing in a potential de-escalation or a quick end to the conflict, but Puckrin warned they may be in for a “rude awakening ”if the crisis persists and higher inflation derails any hopes of further interest rate cuts in 2026.

Gold, Derivatives, Precious Metals, Financial Derivatives, Energy, Futures, Altcoin Watch, Commodities Investment, Oil and Gas, Polymarket, Standard Chartered
2026 US recession odds surge to 36%. Source: Polymarket

Since the start of the conflict on February 28, the odds of a US recession have surged to 36% on the Polymarket prediction market platform.

The US economy now has a near 50% chance of entering a recession in 2026, according to ratings agency Moody’s. 

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Magazine: Bitcoin’s ‘narrative vacuum,’ Ethereum now inevitable: Trade Secrets